President John Mahama says government has not introduced subsidies on electricity.

On Monday July 4, 2016, the Electricity Company of Ghana (ECG) issued a statement announcing the implementation of “Utility relief” to consumers.

The new reckoner incorporates the directive for ECG to make the applicable electricity rate for 0-50 units of consumption inclusive so that all residential customers will enjoy the rate for lifeline customers. It also provides a subsidy which is energy based for industrial and commercial customer,” the statement added.

Speaking on Wednesday at the Independent Square to mark this year’s Eid al-Fitr, president Mahama said the ECG is merely realigning the billing system to make it easier for consumers to know the amount of power they are consuming.

He says the new directive will ensure transparency in the billing system and bring some relief in terms of bills consumers pay.

“It is not a subsidy,” president Mahama said. “It is a realignment of the billing system that makes it possible for us to be able to know how much we are spending on electricity.”

He added: “They [ECG] have done a realignment of their billing system and I believe that people can begin to see some relief in terms of the bills they were paying. The bills have been made more transparent so that you can tell with every unit you buy how much the value of the unit is.”